Long-term interest rates in major economies, including Korea,

have generally shown a linkage to changes in long-term U.S. government bond interest rates, despite differing financial and economic situations.

This trend has intensified throughout a period of global monetary tightening since 2022.

Particularly noteworthy is the increased synchronization observed in Korea with the long-term U.S. government bond interest rates.

The ripple effect of U.S. Treasury yields is expected to remain high for the time being.

In this regard, there is a possibility that domestic long-term government bond interest rates will show high volatility

due to the influence of U.S. Treasury yields in the process of pivoting the Korea-U.S. monetary policy stance.

For more details, please refer to [BOK Issue Note No.2024-8]

「Background and evaluation of expanded impact of U.S. interest rates on the Korean economy during the recent global monetary tightening」